What performance measure is calculated by dividing return by overhead cost activities?

Return on sales (ROS) measures the percentage of revenue that translates into profit, calculated by dividing net income by total sales. While ROS is an important metric for understanding profitability relative to revenue, it does not specifically address overhead costs, making it distinct from the calculation of return on profit.

Return on expenses focuses on the relationship between net income and total expenses, but it does not isolate overhead costs specifically. This measure can provide insights into overall cost management but fails to directly reflect the performance of overhead relative to profit, which is the essence of return on profit.

Return on costs is a more general term that could imply different calculations depending on context, potentially encompassing various types of costs. However, it does not specifically define the relationship between profit and overhead costs, failing to capture the precise measure that return on profit provides.